Jun 16, 20235 min read

Annuities, Securities, Assets: (excel spreadsheet)

Updated: Jun 29, 2023

Financial tools for Investment interest.

spread-sheet available

https://docs.google.com/spreadsheets/d/e/2PACX-1vTErBuDxiMX4DCihBOV6yn8NMOCPvr7Wx-qd_-9Zt7TSoWJHSnOh51vDFuNuhwMtMqwwj54_xvoptSf/pubhtml

The optimal age for revenue generation benefit will vary depending on a number of factors, including your individual circumstances, goals, and risk tolerance. However, some general guidelines can be helpful.

In general, younger people tend to have more time to save for retirement, and they may be able to take on more risk in their investments. This can lead to higher potential returns, which can help to generate more revenue in the long run.

As people get older, they may have less time to save for retirement, and they may be less willing to take on risk. This can lead to lower potential returns, which can reduce the amount of revenue that can be generated. However, it is important to note that there are a number of factors that can affect the optimal age for revenue generation benefit. For example, people who have high-paying jobs may be able to generate more revenue even if they start saving later in life. Additionally, people who are able to save a large portion of their income may be able to generate more revenue regardless of their age. Ultimately, the best way to determine the optimal age for revenue generation benefit is to speak with a financial advisor. A financial advisor can help you to assess your individual circumstances and goals, and they can help you to develop a financial plan that is right for you.

Here are some additional factors to consider when determining the optimal age for revenue generation benefit:

Your income: How much money do you earn each year?
Your expenses: How much money do you spend each year?
Your savings: How much money do you have saved for retirement?
Your risk tolerance: How much risk are you willing to take with your investments?
Your time horizon: When do you need to start taking income from your investments?

By considering all of these factors, you can determine the optimal age for revenue generation benefit for you.

https://docs.google.com/spreadsheets/d/e/2PACX-1vTErBuDxiMX4DCihBOV6yn8NMOCPvr7Wx-qd_-9Zt7TSoWJHSnOh51vDFuNuhwMtMqwwj54_xvoptSf/pubhtml

Annuity

A 35-year-old working class individual, let's call her Jane, decides to purchase an annuity to generate an income stream in retirement. She invests $100,000 in a fixed annuity that guarantees her a monthly income of $500 for life.

Securities

Jane also invests $50,000 in a diversified portfolio of stocks and bonds. She expects to earn an average annual return of 7% over the next 30 years.

Assets

Jane also owns a home worth $250,000. She plans to sell her home when she retires and use the proceeds to supplement her income.

Chart

Here is a chart that shows the information on dollars, rates, ages, maturity ages, and totals on each of the three applicable financial tools:

https://docs.google.com/spreadsheets/d/e/2PACX-1vTErBuDxiMX4DCihBOV6yn8NMOCPvr7Wx-qd_-9Zt7TSoWJHSnOh51vDFuNuhwMtMqwwj54_xvoptSf/pubhtml

By the time Jane retires at age 65, she will have a total of $675,000 in assets. This includes her annuity, her securities, and the proceeds from the sale of her home. She will also be receiving a monthly income of $500 from her annuity. This will provide her with a comfortable income in retirement.

It is important to note that this is just a hypothetical example. The actual results for Jane will depend on a number of factors, including the performance of the stock market and the interest rates offered by insurance companies. However, this example illustrates how working class individuals can use annuities, securities, and assets to generate an income stream in retirement.

Use Case Scenario

A working-class individual, let's call them John, is 35 years old and wants to start saving for retirement. John has a high-paying job, but he also has a lot of debt. He wants to find a way to save for retirement without taking on too much risk.

John decides to invest in a fixed annuity. He invests $10,000 in the annuity, and he chooses an interest rate of 5%. The annuity will mature when John is 65 years old.

John also invests in a variable annuity. He invests $5,000 in the annuity, and he chooses a conservative investment portfolio. The variable annuity will mature when John is 65 years old.

Finally, John invests in a mutual fund. He invests $5,000 in the mutual fund, and he chooses a growth-oriented investment portfolio. The mutual fund will mature when John is 65 years old.

Chart of Information

Here is a chart of information on the dollars, rates, ages, maturity ages, and totals of each of the three applicable financial tools:

https://docs.google.com/spreadsheets/d/e/2PACX-1vTErBuDxiMX4DCihBOV6yn8NMOCPvr7Wx-qd_-9Zt7TSoWJHSnOh51vDFuNuhwMtMqwwj54_xvoptSf/pubhtml

Conclusion

In this use case scenario, John invested in a fixed annuity, a variable annuity, and a mutual fund. He invested a total of $20,000 in these three financial tools. By the time he is 65 years old, John's investments will have grown to $63,773.70. This will provide him with a comfortable income in retirement.

It is important to note that this is just a hypothetical example. The actual results of investing in these financial tools will vary depending on a number of factors, including the performance of the underlying investments. It is always best to speak with a financial advisor before making any investment decisions.

Annuities

Use case: A 35-year-old working class individual is looking for a way to generate a guaranteed income stream in retirement. They decide to purchase an immediate annuity that will provide them with $5,000 per month in income for life.
Dollars: The individual invests $200,000 in the annuity.
Rate: The annuity is paying an interest rate of 5%.
Age: The individual is 35 years old when they purchase the annuity.
Maturity age: The individual will receive income from the annuity until they die.
Total: The individual will receive a total of $1.2 million in income from the annuity over their lifetime.

Securities

Use case: A 45-year-old working class individual is looking for a way to grow their retirement savings. They decide to invest $10,000 in a mutual fund that invests in stocks.
Dollars: The individual invests $10,000 in the mutual fund.
Rate: The mutual fund has an average annual return of 7%.
Age: The individual is 45 years old when they invest in the mutual fund.
Maturity age: The individual plans to retire at age 65.
Total: The individual's investment will be worth $63,000 when they retire at age 65.

Assets

Use case: A 55-year-old working class individual owns a home worth $300,000. They decide to rent out the home to generate income.
Dollars: The individual receives $2,000 per month in rent from the home.
Rate: The rent is equivalent to a 7% annual return on the home's value.
Age: The individual is 55 years old when they start renting out the home.
Maturity age: The individual plans to sell the home at age 70.
Total: The individual will receive a total of $350,000 in rent over the course of 15 years.

Chart

Here is a chart that summarizes the information on dollars, rates, ages, maturity ages, and totals for each of the three applicable financial tools:

https://docs.google.com/spreadsheets/d/e/2PACX-1vTErBuDxiMX4DCihBOV6yn8NMOCPvr7Wx-qd_-9Zt7TSoWJHSnOh51vDFuNuhwMtMqwwj54_xvoptSf/pubhtml

This is just one example of how these financial tools can be used by working class individuals. The best way to determine which tools are right for you is to speak with a financial advisor.

Data science & prompt engineering: Travis Stone

AI: Bard

Resume:

Annuities, Securities, Assets: (excel spreadsheet)

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Contact Travis Stone: Trcsdalton@yahoo.com